For many people, buying a new car just isn't an option. Soaring prices have kept many consumers away or in the used car market. But Alex Miller reports there's still one new model that's considered affordable.
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00:00 Prices for new and used cars have been going up.
00:03 It's making it so many of us can't afford to buy.
00:07 But Alex Miller reports there's still one new model
00:10 that's considered affordable.
00:12 The average price of a new US vehicle
00:16 is now just over $48,000.
00:19 That's 25% more than before the pandemic
00:23 began three years ago.
00:24 It's just very painful to go on to a car lot today
00:29 and realize that you may be paying 40, 60,
00:32 or $80,000 for a new vehicle.
00:35 I'm looking at buying a used truck,
00:37 so something I can tow my boat.
00:39 For me, it's affordability.
00:40 And five years ago, there were about a dozen new small cars
00:43 that sold for under 20 grand,
00:45 including Kia Fortes, Chevy Cruzes,
00:48 Toyota Corollas, and Honda Civics.
00:50 Now, there's just one, the Mitsubishi Mirage.
00:54 Dealerships started selling the current version
00:56 of the Mirage in 2011.
00:58 Its average cost now is $19,000.
01:01 But even with the low price, sales are still slow.
01:04 And Automotive News reports Mitsubishi
01:06 will stop selling the Mirage in a couple of years.
01:09 Detroit automakers stopped making subcompact
01:12 and compact cars because of low profit margins.
01:15 More buyers are now turning to SUVs and trucks.
01:18 Now, with fewer affordable options,
01:20 many people are hanging on to their vehicles longer.
01:23 I've seen actually an increase in people
01:24 wanting to get their cars fixed instead of buying new cars.
01:27 But even that option is costing more.
01:29 Like everything, inflation has affected
01:31 prices for parts and labor.
01:33 Costs have also gone up to operate the business.
01:36 And then we also see a lot of vendors
01:38 adding in fees for delivery now
01:40 to help them cover some of their costs.
01:42 So we're getting fees we've never gotten before.
01:45 Auto analysts expect car prices to drop slightly
01:48 as factories produce more vehicles,
01:49 but a new car for $20,000 may soon be a thing of the past.
01:53 Alex Miller, Scripps News.